Quote from @Jack Krusinski: When my rental properties are in a situation like this, I make an effort to create a structured and aggressive payment plan to help tenants catch up.

Then use the extra roommate rent income to pay down your mortgage and look to refi to a lower payment in the future (3-5 years) - so it cashflow when you move out.You could also choose the smaller unit and STR the other unit to generate more cash to pay down your mortgage and refi, so it cashflows when you move out.Bottom line: you'll have to get creative to solve your cashflow challenge!

One concern I have is knowing when and how I should go about refinancing an FHA loan.The reason for an FHA loan is because though I have enough for a down payment I am not ready to commit all of it.

Very little documentation requirements, no income requirements, etc, just need to have on-time payment history for previous 12 months, and be lowering your interest rate at least .5%. 

Structuring the Deal with a PartnerWhile your partner cannot directly participate in the loan, there are ways to structure your arrangement to reflect your 50/50 partnership:Option 1: Post-Purchase Equity SaleYou obtain the 203(k) loan in your name as the owner-occupant.After closing, you sell your partner 50% equity in the property via a quitclaim deed or similar legal instrument.Your partnership agreement would outline each person’s roles, responsibilities, and share of profits.Note: Be mindful of FHA’s rules around title changes and ensure this doesn’t violate loan terms.Option 2: Partnership Contribution AgreementYou both contribute to the down payment and renovation costs as outlined in a partnership agreement.Your partner’s contribution could be recognized as a share of the equity in exchange for funding, services, or property management.The partnership agreement would detail how profits, responsibilities, and equity are split.Option 3: Joint Venture AgreementStructure the deal as a joint venture, where you own the property personally (required for the FHA loan), but profits and roles are split per a formal agreement.Your partner could receive equity-like compensation through profit-sharing without being on the title.3.

Non-payment of rent is always the path of least resistance to get someone out in a somewhat timely manner.

If you aren't going to assume the loan as discussed in #2, then you could do a "Subject To" deal where you just take over payments BUT that is really only good for the seller if they are facing foreclosure.

Is there a pre-payment penalty?

I hope everyone is well, I came here because I need expert advice from you guys, let me tell you my situation: I have a investment property that i purchased 2 years ago and is valued at 65k that does not have any mortgage and that is already paid off, I want to use that property to buy another one for down payment , the question here is: What is the best way to do it. a heloc or a cashout refinance and why. your response will be appreciated :)

I see you mentioned the BRRR method, here's a nice breakdown of it here on Bigger Pockets.